City grants extension for grocery store project

Published: Tuesday, April 2, 2013 at 7:48 p.m.

Last Modified: Tuesday, April 2, 2013 at 7:48 p.m.

OCALA -- The grocery store planned for Ocala's west side is moving forward.

Without any discussion, the Ocala City Council on Tuesday voted unanimously to grant an 18-month extension to M2PCD, the group that is developing the project in the 2400 block of West Silver Springs Boulevard, also known as State Road 40, on the site where the Ocala Police substation currently sits.

"Our financing -- everything is in place," Howard Gunn, one of M2PCD's principals, said before Tuesday's meeting. "We are waiting for the disbursement of the money as well as other funds we are soliciting as well."

M2PCD, which has engaged the help of a consultant, is obtaining most of the project's funding --- about $15 million -- from UrbanAmerica under the New Markets Tax Credit Program. Those who buy the tax credits receive credit on their federal income taxes for investing in this low-income area.

West Ocala meets the federal definition of a food desert, which entitles this property to other financing for projects aimed at correcting this condition. Although there are convenience stores, there are no grocery stores that sell a variety of fresh fruit and vegetables on Ocala's west side.

Gunn expects to close on all the project financing by August.

"I think we will be able to move quickly once the money is there," Gunn said.

He said the group is hoping to break ground on the project in July or August. He estimates the project could be completed in about nine months, which, he said, is an "aggressive" construction schedule.

Right now, M2PCD is getting commitments from tenants for the 31,000-square-foot plaza, which will be home to a 15,000-square-foot grocery store.

"Half the tenants have given us letters of intent," Gunn said.

He said the grocery store, Sav-A-Lot, has agreed to anchor the center. An agreement in principal has been reached with the Heart of Florida Health Center chief executive officer, subject to board approval, to open a 2,000-square-foot clinic.

A local business owner has signed a letter of intent to open both a barber shop and full-service hair salon. The Ocala Police Department has agreed to relocate its substation into the shopping center.

In addition, a hair supply company and a local insurance office have expressed interest.

There are discussions under way with a local bank that are contingent upon the site plan accommodating a three-bay drive-in facility and space in the shopping center's end cap.

"We are still interviewing builders," Gunn said.

In the meantime, the developers are asking for additional time from the city, which has agreed to provide the roughly 2.8 acres of land.

"I am sure we won't need the whole 18 months, but it's better to have it than not have it," Gunn said. "We did need the additional time to make sure the second phase would be done in the appropriate time."

The second phase includes building an indoor farmer's market and food dehydration plant on about 16 acres of city-owned land on Southwest 20th Court near Marion Senior Services. Only about 12 acres are usable because of the location of a city-owned cell tower. There have been community meetings with local residents who initially expressed concerns about the development.

Scott Hackmyer, who is not an M2PCD principal but who has been offering assistance to the group, said it took time to get a grocery store to commit.

"That slowed us down," Hackmyer said. "Now we have a firm commitment from the grocery store."

He said the tax credits for the Ocala project are added to credits for other projects.

"Ocala's package is one small package that UrbanAmerica sells all over the country," Hackmyer said.

He said it would be wonderful if West Ocala residents could begin shopping at the grocery store in August 2014.

Gunn agrees.

"This is not going to be a flop," Gunn said. "We want to show Ocala what can happen if we have the support of each other."

<p>OCALA -- The grocery store planned for Ocala's west side is moving forward.</p><p>Without any discussion, the Ocala City Council on Tuesday voted unanimously to grant an 18-month extension to M2PCD, the group that is developing the project in the 2400 block of West Silver Springs Boulevard, also known as State Road 40, on the site where the Ocala Police substation currently sits.</p><p>"Our financing -- everything is in place," Howard Gunn, one of M2PCD's principals, said before Tuesday's meeting. "We are waiting for the disbursement of the money as well as other funds we are soliciting as well."</p><p>M2PCD, which has engaged the help of a consultant, is obtaining most of the project's funding --- about $15 million -- from UrbanAmerica under the New Markets Tax Credit Program. Those who buy the tax credits receive credit on their federal income taxes for investing in this low-income area.</p><p>West Ocala meets the federal definition of a food desert, which entitles this property to other financing for projects aimed at correcting this condition. Although there are convenience stores, there are no grocery stores that sell a variety of fresh fruit and vegetables on Ocala's west side.</p><p>Gunn expects to close on all the project financing by August.</p><p>"I think we will be able to move quickly once the money is there," Gunn said.</p><p>He said the group is hoping to break ground on the project in July or August. He estimates the project could be completed in about nine months, which, he said, is an "aggressive" construction schedule.</p><p>Right now, M2PCD is getting commitments from tenants for the 31,000-square-foot plaza, which will be home to a 15,000-square-foot grocery store.</p><p>"Half the tenants have given us letters of intent," Gunn said.</p><p>He said the grocery store, Sav-A-Lot, has agreed to anchor the center. An agreement in principal has been reached with the Heart of Florida Health Center chief executive officer, subject to board approval, to open a 2,000-square-foot clinic.</p><p>A local business owner has signed a letter of intent to open both a barber shop and full-service hair salon. The Ocala Police Department has agreed to relocate its substation into the shopping center.</p><p>In addition, a hair supply company and a local insurance office have expressed interest.</p><p>There are discussions under way with a local bank that are contingent upon the site plan accommodating a three-bay drive-in facility and space in the shopping center's end cap.</p><p>"We are still interviewing builders," Gunn said.</p><p>In the meantime, the developers are asking for additional time from the city, which has agreed to provide the roughly 2.8 acres of land.</p><p>"I am sure we won't need the whole 18 months, but it's better to have it than not have it," Gunn said. "We did need the additional time to make sure the second phase would be done in the appropriate time."</p><p>The second phase includes building an indoor farmer's market and food dehydration plant on about 16 acres of city-owned land on Southwest 20th Court near Marion Senior Services. Only about 12 acres are usable because of the location of a city-owned cell tower. There have been community meetings with local residents who initially expressed concerns about the development.</p><p>Scott Hackmyer, who is not an M2PCD principal but who has been offering assistance to the group, said it took time to get a grocery store to commit.</p><p>"That slowed us down," Hackmyer said. "Now we have a firm commitment from the grocery store."</p><p>He said the tax credits for the Ocala project are added to credits for other projects.</p><p>"Ocala's package is one small package that UrbanAmerica sells all over the country," Hackmyer said.</p><p>He said it would be wonderful if West Ocala residents could begin shopping at the grocery store in August 2014.</p><p>Gunn agrees.</p><p>"This is not going to be a flop," Gunn said. "We want to show Ocala what can happen if we have the support of each other."</p><p><i>Contact Susan Latham Carr at 867-4156 or susan.carr@starbanner.com.</i></p>